This fuels worries that the Bank of England might not leave interest rates at 5.25% on November 2nd, which was the main forecast until now, but will instead raise rates by a quarter point.

In other news, a deadly blast at a hospital in Gaza increased fears that the conflict between Hamas and Israel would escalate, sending investors to haven assets. Gold rose, and so did oil due to supply concerns.

Among stocks, Whitbread climbed 3.6% after it posted a 44% increase in half-year profits and announced a share buyback plan of 300 million pounds.

Homebuilder Barratt Developments fell 3.0% after it abstained from releasing its full-year guidance due to the "uncertain" outlook.

Things to read today:

Fallout from Gaza hospital blast looms over Joe Biden’s Tel Aviv trip (Financial Times)

Recession Looming as jobs market weakens says Bank rate-setter (Daily Telegraph)